Domestic air travellers in Nigeria experienced a significant increase in airfares in July 2024, with prices soaring by 25.12% compared to the same period in the previous year. According to the Nigerian Bureau of Statistics (NBS) Transport Fare Watch Report, the average airfare for domestic flights rose to ₦98,561.74 in July 2024, up from ₦78,775.74 in July 2023.
The report also highlighted a month-on-month increase in airfares, which went up by 9.65% from June 2024 to July 2024. This surge in airfare is occurring amid ongoing challenges in the aviation sector, including concerns from the Airline Operators of Nigeria about multiple taxations following the federal government’s announcement of additional tax charges.
Last month, the Federal Government expressed its intention to further increase tax charges, which has sparked concerns within the industry. The Managing Director of the Nigerian Airspace Management Agency (NAMA), Umar Farouk, stated at the League of Airports and Aviation Correspondents seminar in Lagos that en-route navigational charges would be raised from ₦2,000 and ₦6,000 to ₦18,000 and ₦54,000 per flight. Additionally, the cost of extending service hours to airlines has been increased from ₦50,000 to ₦450,000, representing an 800% increase aimed at recovering the costs of diesel and other logistics.
These increased charges could lead to a further hike in airfares, with some experts predicting that fares could rise by as much as 800% if these new charges are fully implemented.
In contrast to the rising costs of air travel, the NBS report noted a decline in the fares of other transportation modes. For instance, the average fare for bus journeys within cities decreased by 2.18%, from ₦963.58 in June 2024 to ₦942.61 in July 2024. This trend was also observed in the costs of motorcycle and waterway journeys, which saw reductions during the same period.
